Governance & Economic Growth

Abstract

This paper looks at some of the fundamental ideas in contemporary economics such as the basic economic problem, opportunity cost and allocation a person is expected to encounter when they are first introduced to economic theory. It attempts to explain how the manner in which these concepts are interpreted and disseminated in mainstream economics may be counter productive to the capacity of economics to develop new ways of countering scarcity. It aligns these concepts with recent unrest in Europe caused by austerity measures. The paper looks at the capacity for contemporary economics to emerge from a cocoon spun from cobwebs of antiquated thought and inhibitions in order for it find extraordinary solutions for the extraordinary economic challenges the world faces today. Accelerated economic growth in an EOS model is applied to the economy of a developed country to illustrate the faster pace at which the model can transform stock markets and economic conditions as well as an illustration of how the current model may not exploit the full potential for market capitalisation businesses could have. In addition to this the paper addresses the ability of workers to take control of their finances through a concept concerning the capitalisation of their labour. A labour capitalisation fund allows employees to have their projected lifetime earnings paid up front and invested for the duration of their working life. It improves the relationship between capital and labour, frees up financial resources for governments and creates a new lucrative financial product for banks and other institutions in the financial services industry.

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